Question

Which of the following best describes the power of the Federal Trade Commission? It can: a. Issue cease-and-desist orders when firms are engaged in unfair methods of competition b. Investigate unfair business practices on its own initiative c. Issue cease-and-desist orders for unfair methods of competition and investigate unfair business practices on its own initiative

Answer 1

Answer: Option (C)

Explanation:

The Federal Trade Commission has the power to prevent and investigate the deceptive trade practices that at times take place. The statute i.e. the section 5 of the Federal Trade Commission Act has declared that the unfair means or methods of the competition either in or else affecting the commerce, and also the deceptive or unfair practices or acts either in or affecting the commerce, are known to be unlawful.